The Tattamangalam Service Co-operative Bank Limited vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, The Tattamangalam Service Co-operative Bank Limited, filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 21.07.2023, in proceedings under section 143(3) of the Income Tax Act, 1961. The assessee claimed a deduction under section 80P of Rs.4,84,76,854/- for the assessment year 2020-2021. The assessee also claimed an expense of Rs.7,75,676/- in the Profit & Loss account on account of interest paid towards provident fund, which was not related to the business of the assessee. The interest earned on these deposits was credited to the Profit and Loss account and subsequently paid back to the employees. The Assessing Officer disallowed the claimed expense and added it back to the income of the assessee. The assessee appealed against this decision, arguing that the disallowance was prejudicial and unsustainable.…

Legal Issues

• 1. Whether the disallowance of the claimed expense is prejudicial and unsustainable.

Judgment Outcome

Decided in favour of Assessee.

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